Friday, 15 February 2013

Thriving Independent Upscale Café Culture will ensure huge growth - Suresh Kotak

World Tea & Coffee Expo 2013 (WTCE 2013), Inaugurated at BES Mumbai


“Thriving Independent Upscale Café Culture attracting youth will ensure huge growth in domestic Ready To Drink Tea & Coffee sectors” says Mr Suresh Kotak, Chairman, Kotak Commodities Ltd at the Inauguration of World Tea & Coffee Expo at Mumbai
  • World Tea & Coffee Expo is supported by many eminent trade bodies including Tea Board of India
  • Assocham expects the domestic tea industry to grow at a compounded annual growth rate (CAGR) of about 15%.

Inaugurating the World Tea & Coffee Expo 2013 (WTCE 2013), the only trade show on the Hot Beverage sector in India, Mr Suresh Kotak, Chairman, Kotak Commodities Ltd said, “Thriving Independent Upscale Café Culture will ensure huge growth in domestic Ready To Drink (RTD) Tea & Coffee sectors aided by the health benefits of Tea & Coffee.”
The success of Coffee chains in India has spurred the Tea makers also to launch similar cafes selling a variety of Teas. Tea has the added advantage being considered a healthy drink. The Cafe chains (both Tea & Coffee combined) are expected to generate a turnover of $410 million in India by 2017. Internationally, the market for RTD tea and coffee in terms of revenue is expected to reach US $125 billion by 2017 as against US $69 billion in 2011 (estimated) signaling an anticipated annual growth of 10.9 % 2012 to 2017.
Says Priti Kapadia, Director, Sentinel Exhibitions P Ltd, the organizers of this event, “For International brands, India – a market of a billion people – is almost impossible to ignore. The total branded tea segment in India - currently valued at Rs 6000 crore – is expected to double in the next 5 years. The domestic coffee consumption too has been continuously growing annually at 6%”
According to an Assocham study the domestic tea industry is growing at a compound annual growth rate (CAGR) of about 15%. The study further states that India is world’s largest consumer, second largest producer and fourth largest exporter of tea and accounts for nearly 30% of global output and nearly 25% of tea produced worldwide is consumed in India.
Adds Kapadia, “Wider health awareness, a burgeoning middle-class population with busy lifestyles and an increase in disposable income is making consumers opt for RTD tea and coffee. Some segments like premium and organic coffee and green/herbal tea have created an entirely new market.”
The “World Tea & Coffee Expo”™ (www.worldteacoffeeexpo.com) is supported by leading Trade Bodies like Tea Board of India. (Govt of India), Federation of Indian Tea Traders Association (FAITTA)Bombay Tea Traders Association (BTTA)India-China Chamber of Commerce & IndustrySmall and Medium Business Development Chamber of IndiaConfederation of Indian Small Tea Growers Assoc (CISTA) and Darjeeling Tea Association.

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